For buy-and-hold investors, multi-factor investments help combine uncorrelated investment styles to smooth out volatility. Since there are multiple uncorrelated factors at play, it helps guarantee that at least one factor will help support the portfolio during times of distress. Moreover, a multi-factor ETF removes the need for investors to babysit a portfolio and switch between factors in an attempt to time market moves.

“These are the five factors that we think are very compelling both pro-cyclical and counter-cyclical. And if we combine those in the right way, we provide a portfolio that is an all-weather portfolio,” Oliver added.